Loan modification and other ways to catch up

"Loss mitigation" is the umbrella term for the options your servicer can offer when you're behind. Common ones include:

• Repayment plan — spread the missed payments over future months.
• Forbearance — a temporary pause or reduction in payments.
• Loan modification — a permanent change to your loan terms (rate, term, or balance structure) to make payments affordable.
• Reinstatement — paying the full past-due amount in one sum to bring the loan current.

Which options exist depends on your loan type, your servicer, and your finances. Approval is never guaranteed.

• 120 days: your servicer generally can't make the first foreclosure notice or filing until your loan is more than 120 days delinquent.
• 37 days: if you submit a complete loss-mitigation application at least 37 days before a foreclosure sale, your servicer generally must evaluate it for all available options before the sale.
• Acknowledgment: your servicer generally must confirm in writing within 5 business days of receiving your application and tell you if anything is missing.

The practical takeaway: a complete application, submitted early, carries the most protection. Ask your servicer exactly what documents they need and keep copies of everything.

1. Call your servicer (the number is on your statement) and say you want to apply for loss mitigation.
2. Gather income, expense, and hardship documents they'll ask for.
3. Submit everything together and confirm receipt in writing.
4. If it's confusing, a free HUD-approved housing counselor can help you prepare the application (1-800-569-4287).

Legitimate housing counseling is free or low-cost. Be wary of any company that charges an upfront fee to "negotiate" with your lender, guarantees a modification, or tells you to stop talking to your servicer. HUD's foreclosure guidance explains the common scam patterns.